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Retirement During a Recession? Time Segmentation Can Help.

Can you retire in a recession?

The Time Segmentation for structuring retirement income can help. 

If you’re looking to retire during a recession, the Time Segmentation Method for Retirement Income can give you the financial confidence and strategies you need to weather tough economic times.

In a quick overview, the Time Segmentation Method for Retirement Income works by breaking up your retirement income into different segments, each of which can then be invested differently. The money you need to access in the near term is invested more conservatively, while the money you won’t need for a longer period will be invested more aggressively to grow to cover you later in life. This method takes a middle ground between aggressive methods like systematic withdrawal (4% rule) and the conservative approach of investing all your retirement funds into an annuity.

By using the time segmentation method, we believe you can work towards a comfortable retirement no matter what the economy throws your way.

This strategy helps you preserve your retirement income from market risk and sequence of return risk, both of which can be severely damaging during a recession.

This is especially true during your first ten years of retirement when your finances are most vulnerable to stock market declines. (Download our Free Retirement Guidebook to learn more about this.)

The benefits of this method may benefit you during our current bear market.

Many retirees who adopted a more aggressive approach to retirement income such as systematic withdrawal may be facing difficult choices as their account balances may have taken a severe hit.

Our goal is for those who implemented the Time Segmentation Method for Retirement Income to be weathering the storm much better. Our hope is instead of being white-knuckled as they watch the ebbs and flows of the stock market, they take comfort in knowing that the money they need in the near term is preserved.


So, what can you do if you were hoping to retire soon?

If you’re close to retirement and you didn’t make changes to your portfolio before the recent downturn hit, we understand how you may be feeling. Watching your portfolio decline is scary, especially when you’re so close to achieving your retirement goals.

But it’s important to remember that bear markets are a normal part of investing, and they don’t last forever. In fact, the stock market has averaged a bull market (a period when stocks are rising) about every four years since WWII.

If this scenario hits close to home, here’s some guidance on how Time-Segmentation can help you now:

You still have the opportunity to restructure your investments according to the Time Segmentation Method.  By doing so, you help preserve your future retirement income if the market downturn continues.

For example, you may still be able to preserve the money you need for your first two segments of retirement (generally the first 10 years of retirement) by being more conservative with that money.  That can go a long way in helping you have the confidence to weather the remaining downturn while still positioning yourself to benefit from the eventual market recovery.

No matter where you are in your retirement journey, Time Segmentation can benefit you.

If you did preserve your retirement resources before the market declined and are now holding those resources in cash, I think it’s a great time to begin a Time Segmentation Strategy. 

That’s because yields on safer investments (CDs, Bonds, etc.) which are very important to the security of your early time segments (Your first 10 years) are the highest I’ve ever seen in my career.  This may give you an opportunity to get more income out of less money.  This is an opportunity that is not likely to last forever, since Interest rates may come back down.

The stock market has been on a downward trend recently and with valuations that are at much lower points than we’ve seen in recent years.

While this may be worrying for those who are already invested, it could create an opportunity for those who are just starting to invest their retirement money to ease into the market with their longer-term money.

One strategy that can help you to get started investing during turbulent market periods is dollar-cost averaging.

This approach involves investing your money gradually over a longer time period rather than investing it all at once.  By investing over time, the retiree may reduce the effects that sporadic changes in the stock market may have on their portfolio.

This strategy can be especially beneficial during times when the stock market is experiencing volatility. Investing a fixed sum of money into securities at fixed intervals helps preserve retirement savings from sharp price fluctuations.

One of my favorite Warren Buffett quotes says, “Be fearful when others are greedy, and be greedy when others are fearful.”

Market valuations reflect a high level of fear and could create a good entry point for prudent investors with long-term timeframes.

So regardless of what your strategy has been up to this point, if you’re feeling anxious about retirement, now may be a good time to start a Time Segmented Plan.

I believe the time segmentation method for retirement income will give you the best chance at a comfortable retirement, no matter what the economy throws your way. So, if you’re looking to retire during a recession, this is a strategy worth considering.


How do you access a Time Segmentation Strategy for retirement?

Unfortunately, the Time Segmentation Method is an advanced planning method for creating retirement income and many generalist financial advisors are not well-equipped to provide this level of service.

While it is possible to implement this strategy on your own if you are comfortable with managing complex investments, it’s generally best to seek out the help of a qualified retirement income planner.

The good news is, there are retirement income specialists who can help you implement a Time Segmentation strategy that’s tailored to your specific retirement goals and needs.


At Hunt Country Wealth Management, we have built our entire firm around helping modern (pre)retirees access this method.  We work with clients all over the country to help them plan for and achieve a comfortable retirement.

If you’re interested in learning more about this method or finding out if it’s right for you, we recommend enrolling in our FREE Retirement Basecamp™ Mini Course.

Retirement Basecamp™ is a quick online mini-course designed to help you take control of your retirement planning.

You’ll learn everything you need to know about how to create a retirement plan with the goal of giving yourself the best chance of achieving your retirement goals.

Enrollment is FREE and open to anyone who wants to explore getting started in retirement. It’s the first step of our Sovereign Series™ Retirement Plan and helps you start taking action today, helping you explore questions including: Am I going to be ok in retirement? Do I have enough resources? And how do I make them last my entire life?”

Enroll now and you’ll get instant access to the full course for 30 days.

You’ll learn about:

  • The biggest mistakes people make when planning for retirement
  • The different types of risks that can threaten your retirement and ability to retire
  • Common options retirees consider when creating retirement income, including Time Segmentation
  • How to get started creating your own retirement plan

If you would rather access our team in a one-on-one consultation, you can schedule a free 15-Minute Discovery Call here.


We hope this has helped give you a better understanding of how the Time Segmentation Method can help you retire during a recession.

Please reach out if you have any questions.

Thank you for reading!

Chris Merchant, CFP® BFA®

Founder of Hunt Country Wealth Management


Please click here to enroll in Retirement Basecamp™.



Periodic investment plans do not assure a profit or protect against a loss in declining markets. Such plans involve continuous investment in securities regardless of fluctuating price levels. Investors should consider their financial ability to continue purchases through periods of low-price levels.

Have questions about retirement, investing, or financial planning?


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At Hunt Country Wealth Management we specialize in providing personalized financial services tailored for individuals aged 50 and above. From retirement planning to comprehensive investment management, our experienced team is here to guide you every step of the way.

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By: Chris Merchant, CFP® 

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